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Dividend funds vs Blue Chips w/high dividends
Posted on 10/23/14 at 4:17 pm
Posted on 10/23/14 at 4:17 pm
Am I not understanding this correctly...I'm looking at the Fidelity Dividend & Growth fund - FDGFX, it it looks like the dividend is 1.35%. That seems awfully low for a "dividend" fund when there are hundreds of big time companies that dish out double and triple that amount. Are there any funds out there that have a higher dividend?
5
Posted on 10/23/14 at 4:21 pm to TigerTatorTots
Tons, but you are probably chasing a really dumb strategy.
Posted on 10/23/14 at 4:22 pm to TheHiddenFlask
Just exploring really...you don't like high dividends?
Posted on 10/23/14 at 4:51 pm to TigerTatorTots
It's not that I like them, it's just that they have been rushed into by yield pigs and there aren't many high yielding blue chips that look like an even okay value because of it.
If you want yield, invest in good stocks and sell when you need cash. LTCG taxes are cheaper than income taxes any way.
If you want yield, invest in good stocks and sell when you need cash. LTCG taxes are cheaper than income taxes any way.
Posted on 10/23/14 at 5:41 pm to TigerTatorTots
Note the "Growth" part in the name. In the end high dividend payers will not be growth stocks. Growth stocks use their cash to grow the company, not the dividend.
Some of these funds look for Dividend Growth so the dividend is fairly modest but expected to grow over time. I have not researched or know the goal of FDGFX.
Some of these funds look for Dividend Growth so the dividend is fairly modest but expected to grow over time. I have not researched or know the goal of FDGFX.
Posted on 10/23/14 at 7:42 pm to TigerTatorTots
I don't necesserily think dividend funds are intended to pay great dividends. Instead, the intent is to simply invest broadly in companies that have historically paid high dividends, as the perception is that these are stable, high performing companies. I have some Vanguard Dividend Funds/ETFs.
Posted on 10/24/14 at 1:14 am to TigerTatorTots
dividend & growth =/= dividend growth
Posted on 10/24/14 at 6:00 am to TigerTatorTots
Look at HTD or ETO if you want growth and dividends.
Posted on 10/24/14 at 7:37 am to TheHiddenFlask
quote:
LTCG taxes are cheaper than income taxes any way.
LTCG tax rate = qualified dividend tax rate
Additionally if you want to know what a fund is truly yielding based on its holdings you can add the expense ratio to the stated yield. This isn't the yield you will receive but if a fund pays 1.75% in dividends and has an expense ratio of 1.25% the holdings are yielding 3% but the expenses are eating up a large chunk of that.
Posted on 10/24/14 at 11:05 am to TheHiddenFlask
quote:
If you want yield, invest in good stocks and sell when you need cash. LTCG taxes are cheaper than income taxes any way.
what are these good stocks you speak of?
Posted on 10/26/14 at 12:29 am to TheHiddenFlask
Flask - like VDAIX and VDGIX and VHDYX
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